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Technology adoption, integration lever to move up value chain: Report

Jakarta (ANTARA) – The APEC Coverage Help Unit’s new coverage transient requires extra vigorous improvement, adoption, and funding in fourth industrial revolution applied sciences in APEC to help member economies’ efforts in transferring up the worth chain.

Shifting up the worth chain will make the area extra resilient and improve financial good points, as famous by the APEC Coverage Help Unit in a press release obtained right here on Wednesday.

The fourth industrial revolution refers back to the integration of digital applied sciences in numerous sectors, with innovations from a variety of fields, corresponding to info know-how {hardware} and software program, connectivity, knowledge administration, person interfaces, energy provide, in addition to client items, good properties, autos, and healthcare functions.

“Taking part in world worth chains is a typical avenue for economies to hitch the worldwide manufacturing and the innovation ecosystem. Nevertheless, we additionally know that the income generated from every stage of the worth chain just isn’t equally distributed,” Akhmad Bayhaqi, a senior analyst with the Coverage Help Unit, remarked.

Bayhaqi defined the idea of the “smiling curve” in worth chains, whereby the 2 ends of the smile — one finish nearer to the producer and the opposite nearer to the buyer — have larger acquire when it comes to worth added as in comparison with the center level.

“This center level is the labor-intensive manufacturing stage, which usually provides much less relative worth,” he defined.

“In an effort to improve income and good points from collaborating in world worth chains, member economies might transfer their place both upstream in direction of analysis and improvement actions or downstream in direction of branding and advertising and marketing actions,” he remarked.

That’s the place the event and adoption of fourth industrial revolution applied sciences play a task, based on the coverage transient. The extent of technological development of an financial system might affect its place in world worth chains.

Investing in analysis and improvement in addition to labor upskilling, as an illustration, will help member economies leapfrog to larger levels, whereas a extra conventional method, corresponding to specialization, might assist member economies incrementally construct their know-how and manufacturing capabilities as they transfer up worth chains.

In 2019, the APEC area contributed round 80 p.c, or US$699 billion, of world exports of fourth industrial revolution merchandise and 63 p.c, or US$533 billion, of their world imports.

China was the main world exporter, adopted by Chinese language Taipei, Japan, Korea, and Mexico. On the import aspect, the US and China had been the 2 principal contributors, importing 24 p.c and 21 p.c, respectively.

The coverage transient additionally measures how revolutionary APEC economies are within the fourth industrial revolution discipline by assessing the variety of patent utility collections overlaying comparable technical content material.

Within the final 20 years, the APEC area has recorded a six-fold improve in patent households, from simply over 9 thousand in 2000, to just about 57 thousand in 2019.

These had been primarily for connectivity, house, client items, in addition to info know-how {hardware} and software program.

Economies which are most lively in patenting, corresponding to Canada, China, Japan, Korea, Chinese language Taipei, and the US, additionally present excessive patent content material embedded of their worth chains.

“International worth chains, as a type of commerce community between multinational firms and their globally dispersed suppliers, will be channels for the switch of data, know-how, and innovation,” Bayhaqi defined.

“Superior digital manufacturing applied sciences can result in integration and upgrading advantages in addition to alternatives, corresponding to enhancing manufacturing effectivity utilizing massive knowledge analytics,” he concluded.

The benefit of adopting and investing in fourth industrial revolution applied sciences transcend including income and good points, based on the report.

It’s a forward-looking technique that permits member economies to proceed their revolutionary development path, as mandated within the APEC Putrajaya Imaginative and prescient.

In the meantime, the profitable adoption of those applied sciences depends on enabling components, corresponding to closing the digital expertise hole by way of digital literacy coaching; upskilling for native workforces; and data transfers by way of overseas direct funding in prioritized sectors.

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